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tv   Mad Money  CNBC  August 15, 2013 6:00pm-7:01pm EDT

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enjoy. "mad money" with jim cramer starts right now. my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now. hey, i'm cramer him welcome to "mad money." welcome to cramerica. if you want to make friends, i try to save you money. my job is not just to entertain you, teach, coach you, all me at 1-800-743-cnbc. you know what we haven't had in a long time? a day like today a. day where pretty much everything went
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wrong that could go wrong for stocks, which is why the dow plunged 225 points. s&p plummeted to 1.43%. the nasdaq knowsdived. to understand what triggers a sell-off of this magnitude, you have to recognize this market has multiple enputs and at times, these inputs flash bright red. today was, indeed, a bright red day. let's go through the information that the market uses to determine prices on any given day. because i want you on the same page as me understanding this stuff. first is what we call the macro, that's broad sense of economic data that trig ter reaction of the stockmarket and the much bonger bond market. on thursday at 8:30, we get those jobless claims. they were the lowest in six years. not so fast. it's good for the economy. but it's not necessarily good for the stock. what happens when we get good
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macro news like these jobless rates? immediately, interest rates go higher. you have to borrow more money when things are improving? interest rates reached a high t. key government treasury, we call the bellwhether bond, a term that's from the bell around the neck of the ram that leads this sheep flock shot up to 2.76%, a 30-84 bond, flew up to 3.8%. both of these levels signify important increases that have historically caused a slowdown in future business. but you might ask, isn't the fed supposed to be stopping the process? isn't the fed supposed to be helping things out here? doesn't the fed want rates kept low so more homes can be bought and purchased and so on? the answer there is yes. that's the fed's goal, but if the economy is turnedsh jobless claims, six-ier low the fed is done, right? that's what people are thinking. plenty of people think that's the case. they're anticipating the end of
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federal large s, adding to the bond, bonfire. normally, we shouldn't be too concerned about this interest rate rise, it would typically mean earnings of companies we care about are getting better at the same time. it stand to reason that there will be more consumer spending, right, if more jobs are created? so that positive can overrun the interest rate negative that give stocks a lift, no? today, though, we got not one, but two high profile earnings disappointments that totally befuddled the market in light of this macrodata. the disappointing numbers from cisco. that's a tech company and from the biggest retailer in the world, wal-mart. these two dow stocks were hammered with cisco shedding $1.89, wal-mart losing 2.6%. it could have been bigger, tropping from $76 to $sphere.14 input. they are prierk inputs, produced
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a lot of bad pin action for a host of stocks and industries. understandable. since it looks like we are getting the penalty of the high stockmarket without the benefit of higher earnings estimates at the same time. we're cutting the estimates. that's a toxic brew. like swimming in the love can tal or the kiwanis in a super fund sight can i explain sis core can you follow by pointing out the company actually did report a fan taft ec number. then they were attacked on an outlook too conservative for the stock's own good. i can put into context the layoffs they announced the company has been on an acquisition binge. you need to trim after doing those deals or you will have way too much middle management fat and by the way, may i just say, sometimes i've almost felt the outlook was deliberately more negative in order to perhaps
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justify these 4,000 firings and i know that john chambers is a decent man and that wasn't done easily, if cisco hasn't been up 25% for the 84, well it was up 34 cents going into the quarter. it had been up say half of that, i think it would have gone higher today not lower, because business is so good the stock is very cheap, especially when you consider the earning, growth and 2.8% yield, i still like it. but i can't explain wal-mart. because the numbers for the chamber, 100 million shoppers spend money every single week didn't lock good at all. wal-mart ratcheted down expectation levels with a slowdown in consumer spending. again, that's the opposite of the macro inputs are showing. could it just be wal-mart? are they screwing up? you might think that. but then again, remember, macy's reported downboat numbers just yesterday. either one was lackluster, i might be able to reach a judgment the fault isn't the consumer but the execution of
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the enterprise, but both companies are well run and their conclusions too similar to sell, sell, sell. >> the house of pain! >> i like the big game for the market reacts suddenly, a trend reversal, something we learned in our chart week series, that continues later in the show. with esau gold zoom up 30 bucks as the macro follows the economy is so strong it could be bringing back inflation. >> boo! >> gold is down 28% from its record high two years ago. see, this rally took people's breasts iway, could there be that much inflation? oil ran up again ticking up to 107. so at the same time that interest rates are rising, impact in the cost of everything from buying a car to a house to lower refinancing, the consume verse to pay more at the pump. this is not a good picture, ladies and gentlemen, in the meantime the shock waves from cisco and wal-mart were felt far and wide, even when they are focused on telco and many companies are doing quite well. we learned from adnet, wal-mart
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drove down better numbers. that's all well and good. i know what you are thinking. all right, jim, that's great, the history of the day what will happen next? first to get back on a bullish course, we obviously need interest rates to retreat, top out and come down. we need data from other companies, particularly the ones from overseas. they show earnings are in fine shape and maybe improving for some companies, given stocks have come down, expectations have come down with them, that is a real possibility. don't take the bullish scenario off the table. even the jobless claims are going lower, i thought that was simplistic. i hot the gold move, you know what, every dog has its day. remember, i always think gold should be a part of a portfolio. all right, that would be the god way out of this joom. you can arc you we've reached a point where rates are high enough, stocks are low enough to mount a decent rally if we get a better combination. the other way out of the jam, though, the odds on way, that's
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a lot more painful. >> the house of pain. >> first stocks have to go down more to reflect the negative inputs i told you about, higher rates could be insidious. steals boyars from the stockmarket. people want stable yield and don't want the price risk. remember, stocks can go down. plus, we need to pay less for future earnings, higher rates signals nor inflation. paper assets as opposed to gold don't hold up well. we know that empierically. in the meantime, wall street analysts have to start cutting their estimates, with i we've all know causes stocks to sink lower, without a break in the price of gasoline, some sort of tax practicic to make up for the higher payroll taxes all of us are paying the consumer won't be less strapped months from now, worries about a potential government shutdown or a debt ceiling. so what do we do? i continue to harp on the theme that we have no real leadership in the stockmarket, but we do have massive gains. i know that we've raised some
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money ringing the register on big gains from my charristable truth. we are weighing lower trusts. you may want to do the same. nobody got hurt taking a profit. let's remember that. here's the bottom lean, we will get out of the penalty box, there is a reason interest rates go down, stocks benefits after the last climb we have, lower stock prices is within the realm of the possibility, so please plan accordingly, al in new jersey, al. caller hey, jim, a friendly jersey boo-yah to you. i'm calling from west orange. in fact, i was at the broadway and talking about an investment in the clothing industries. i had four comparable companies that are bullish from september to all the way the end of april. so i wanted to ask you apt a favorite of yours, ross stores. >> i'm about to report, let me tell you about the rob with ross stores. okay. we are seeing even the absolute best retailers go down. so if i see ross stores at $64.89 and it does go down,
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another couple bucks, i probably wouldn't want to pull the trigger. remember, every time a retailer reports, it's bad, they punish him again, why not get ross as cheaply as possible down 12%, 10 or 12% from a 52-week high, which would put it 62.63. that's where i like it. harls in minnesota, charles. >> hi, jim. i love your show, first time caller. >> thank you. >> pharma hit an all time high. i never sold a share. i owned it 15 years, i'm looking to taking 50 to 75% off the table. my broker says i have too much. 25% of my portfolio is hormone. >> i'm not going to say you have too much. i was going to say if you had more than 20%. hormel is a fine firm. it is the best acting food stock. i got to tell you, that is one fantastic management. if it goes over 20%, take some off. otherwise, hormel one of my fate stocks in this market.
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one of the longest paying dividend payers in your stock sheet. there are bell bottom blues. clapton taught us. i love clapton. then there are bellwhether blues, we will get out of the penalty box, one way god, one way bad, why don't we plan accordingly? "mad money" will be right back. . coming up, perfect prescription? perigo is behind many of the generic drugs you see on store shelves, a big acquisition pumped this company into the spotlight. tonight, cramer is getting the scoop on what this transformitive buy could mean for the stock when he speaks to the ceo in his earnings exclusive. later, choppy waters. summer usually means crowded beaches. so why are they all empty? because chart week is making a big splash. tonight the pack hunters have arrived, cramer's found two species of stocks circling the sea. one points to a hot trend,
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fuelling the future, but swimmers, beware. the other can take a bite out of your portfolio. all coming up on "mad money." a-a-a.
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f-f-f-f-f-f-f. lac-lac-lac. he's an actor who's known for his voice. but his accident took that away. thankfully, he's got aflac. they're gonna give him cash to help pay his bills so he can just focus on getting better. we're taking it one day at a time. one day at a time. [ male announcer ] see how the duck's lessons are going at
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. >> what's happening with pergo? it's a maker of knockoff store brands over the counter and prescription drugs. at the end of july we found out pergo is requiring elan for $6.7, in part because the deal will allow them to buy them with corporate tax rates much lower than the united states. the results came in lower than some wall street analysts were
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expecting. it was 3.25% today. could the weak ness be a buying opportunity? pergo has given you an astounding 107% since february of 2010. move makes you inclined to give the company the benefit of the doubt, i hope. let's check in with the chairman, president and ceo of pergo, hear more about the quarter and how his company is doing. good to see you. all right, cut to the chase, when i saw the news you bought elan, it seemed like something i didn't expect. i have to admit. i know you believe the combination will give you future growth. if you can lay it out. it's different than we hear from perrigo. >> we like elan the first reason it enables our global growth and expansion strategy. that was one of the important things. number two, it gave us the opportunity to have access to an escalateing royalty stream, which is a very important drug for ms and then the 30s for us
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is it would be an irish domicile company. it does have an influence on our tax rate. it will gen rate cash for us for the future, it will generate additional mna for the future. >> let me ask you this, a guy i know has done this. why doesn't every company incorporate in ireland? it's such a good thing for shareholders. >> i think every company has to make their own decision, of course. for us, we looked at the assets specifically with elan. what we put with the elan assets, what perrigo has, we let that synergy, operational and tax synergies be clear. we think there is $150 annually. a big number. i think every company really tries to make their own decision on. that we are excited. we think it's a good opportunity. clearly in the word of synergy, we think one plus one can equal three or more. >> i was surprised to see a big number up. very clear. now, let's talk about growth. some people are worried about the consumer health. i look, every time i seen people
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worry about it, i said, you don't know what the company has up its sleeve. i have been right the doubters have been wrong. tell me, some analysts were disappointed it's going to act sell rate here. >> sure. the total business, as you said, jim the total business was up for the quarter 16%. 12% for the year, we were excited about that, more importantly, as we think about the future, we think we are up 12 to 16%, somewhere in that range in the upcoming year. relative to the question, you are right, though, it's always going to be about three items worth. the first one is about moving the products from the prescription stat to us otc. is happening. >> a bunch are happening in 2014 time frame. >> absolutely. we are seeing more and more products, in fact, there was one for overactive bladder that got a recommendation to move. we're excited about. that the second thing is about the movement for national brand products to store brand. continues as well. what we are seeing there, latest
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52-week data, we are growing store brand about 6%, 6.4%. the total category is going about 3 performance. we're going twice the rate of the total category. and then for us, the third reason is going to be about these new products. we expect to launch more than 75 new products this year alone, just the next 12 months of representing over $190 million of new product sales. we're excited. >> the one that always sticks out for me. i pay a fortune when i buy the brand is this mucinex. this seems to be the one that moves the needle. why does that move the needle? >> first of all, it's a great product. we came out with a store brand equivalent of that product. indeed, we'll offer that product for approximately 25-30% less than the national brand with the same efficacy and safety as a national brand. it's a big product. it's a big family of product t. product we're after is approximately $150 million of national brand opportunity. the total family, which we're looking at additional products is up to $600 million of
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opportunity, that we'll be rolling out in the future. >> that's a huge amount of dollars up for grabs. >> absolutely. >> speaking of big opportunities, china an infant formula is gigantic. you talk directly about china regulatory problems hurting things. the chinese don't want our, is this again discrimination against american companies? what is going on there? >> china, first of all the demand for infavent formula made in the u.s. in china is astronomical. >> safe. >> you want good, u.s. manufactured products. however, there have been changes in the regulatory environment, our products are approved in china, but they change. already some changes they require in labelling. there are labeling riernlts we have to continue to meet those standards. we are continuing to meet those standards as we, you know, requested be i the chinese government. but that changes a lot and we're trying to stay up to it and that's something we're constantly following. my team is working hard at that to insure we will have a good product, good labelings, indeed,
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neat demand nor the product required in china. >> i got to tell you, this could be an exciting time. i want to follow you guys. i want to see how this works with ireland. i thought your presentation was very convincing. i'm never worried about the evolution of the company, because you made it and made it an every time that someone's gotten off, they've made the wrong decision. it will be wrong to get off now. that's joe popp from perrigo, a great company, remember, great growth, remember team's growth, how many companies do we have that still are giving you that kind of growth. after the break, i will tell you some more about money. coming up, choppy waters, summer usually means crowded beaches, so why are they all empty? because cart week is making a big splash. tonight the pack hunters have arrived. cramer's found two species of stocks circleing the sea. one points to a hot trend fuelling the future, but swimmers beware. the other can take a bite out of your portfolio. .
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>> after getting pounded for weeks, the price of natural gas went higher today on smaller than expected inventories. even as the stockmarket got pummelled. since this is chart week on "mad money," we're going off the charts for what it takes to make a major move at last higher. it might seem difficult to imagine, carly, the founder of
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carly trading and first book on commodities and real believes that natgas could be poised for a serious rally. i hope you understand how by czar this is. before we get started, i'd be remiss if i didn't thank all of you home game worries got in on that hashtag sharknado action this week. still a fantastic chart chart-n ha da. we are giving you a double dose of charts. why is garner so bullish when natural gas seems to be in a glut don mode for years. all over the fact that our government refuses to buy incentives to switch to cleaner, cheaper, more domestically abundant fossil fuel, they don't like them. natural gas would help our company break its addiction with opec. first of all, garner points out from a season alper specttive, natural gas experiences a
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meaningful low, either in late july or early august. it then starts to spring back. utilities start stocking up the commodity for the coming weather to heat. that's still the biggest use. natgas builders tend to build it ahead of the season than waiting for it to come. it arranges an uptick every year. at the same time, garner knows speculators like to get bullish going into hurricane season, a hurricane can shut down production causing prices to spike. then, of course, there is chart-nado. check out the daily price of natural gas futures. look at this, gas prices come dramatically oversold. look at this, it is like never lifts its head. when every spirit gets over, a swift rebound can blow out all the shorts. as of last week, large speculators the intig i big discussional investors were holding 125,000 contracts.
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guys, that's extremely bearish. i almost fell over when she showed this to me. garner thinks we could get a rally. would push the price of natural gas higher. make no mistake, we will look at that by looking at the bottom of this chartment at the relative string index the rsi and williams percent oscillator, we talked about the rsi many times going off the chart. it's a momentum indicator. that's the way many of the percentages are. larry williams, little lar to this, generally used to measure whether a stock has gone overboard or oversold. for natural gas, it's in huge oversold territory, you can see that, just as important, they're starting to move hire, you can see that, technicians look at these signs, which a technician like garner could be foreshadowing a rally in the underlying commodity. they have been trading in a fine downtrend since may the bottom
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of the channel has been supplying support fortunate gas that's held multiple times. the within p reason i know this, 324 is real. natgas got hammered last week on news than a larger than expected increase if inventories, prices reversed to end the same day in positive territory and above the crucial 320 support. the pattern is what garner calls a key reversal, okay, this was a key reversal day. all right, sorry, i obscured it. that's a key reversal day. it's very simple, yet surprisingly reliable indication that a trend change could be imminent. the key reversal days in stocks. i talk about them all the time this low last week could mean natural gas is about to go from a bearish downtrend to a bullish uptrnd. i am agreeing with this. according to garner, at the moment where the price breaks down, excuse me, which is what happened a week ago, the bullish traders get triggered causing what is arguably artificial
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selling. meanwhile, weaker hands who can't take the pain tend to get washed out by this move lower. that's where the weaker hands blew out of it. okay. this leaves you with a giant net shore position in something that's already, put this together, giant net shore position right here that's already really oversold right here, so once bargain hunters step in and short covering starts, well, i got to tell you something, the bums who were stopped out scrambled to get back in. that's how you get a relevant lay powerful move, garner says it turns out she thinks it won't go below 310. will be an absolute gift for bulls. this is it, she's calling the bottom here, it's gutsy. how high does garner think you can get? can we make some money here? she sees the resistance at $3.47 on the daily chart, which represents the upper end of the downtrend channel. natgas will be able to punch
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through that level thanks to season strength and the fact that fossil fuel is at historically cheap prices. as soon as it happens, something garner feels is likely, we need to think where the next stock is, in the weekly, this is exsfrordnary, in the weekly chart, look at this, the big resistance at the top of the downtrend chan sell at 380. so that's the next key area. but again, garner thinks it's possible, natgas can break out through that ceiling, too. next up, 440, retested in july highs, money a buck higher than where natgas is now. for garner, that could be where the ramally is at. we want to make that, don't we? we get fresh positive developments, they can go higher. if something positive happens, draw downs on concerns, she says ultimately, are you ready, ski daddy? we're going to 520, you know how much the natural gas companies would make if that happens? if it turns out garner is dead wrong, most of the people are
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wrong, she doesn't seem like commodities gets to the 260 area. that would be bad. she thinks that is a highly likely scenario, given there is a draw down. it kept the 4ri7d on the supply in the market. this guy can't make money here at these prices, they're not drilling t. charts isn't driven by carly garner who has been on a roll lately, suggests natural gas can be due for a significant move higher. this is contrary, people, even a major one as we head into the actual. you know something, i would not be surprised if you weren't dead right. dave in california. dave! >> boo-yah, jim, from california. how are you? >> real good, how about you, dave? >> caller: great. great. jim, last week, news was coming outs of mexico and saying they are finally serious about overhauling the oil and gas industry and lifting a 75-year ban on foreign companies quote investing in their antiquated oil and gas industry. a stock i already own and have a small profit often right now is
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weatherford international, which even without the new oil gas field renaissance i think is a dilate stock for the future. should i hold on or back up the truck now? >> no, don't back up the chart. it's thought well run enough. look, i think a rising tide will lift all drilling companies. so i sell, please don't buy more, there are other high quality companies in weather ford historically has not been able to deliver on the promises of very big finds. he's not nailed that down yet. i think it's important that he nail it down. i think the interest could give him a run for his peso. may i speak to richard in florida, please. richard. >> caller: hey, jim, i want to give you a boo-yah from miami, florida. >> nice. what's going on? >> caller: hey, a question for you. what do you think petrobras will do six months from now? >> so far so good. i think this company can go a lot higher. 17, maybe 18 by then. wouldn't shock me.
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they've got a really good prospects, they are starting to drill. i need david in virginia. david. >> a united states treasury boo-yah, jimbo. >> holy cow, your spirit is overwhelming, it's certain lip infecttuous. what's up? >> caller: you wrote in your book on the confessions of a wall street addict. love it, man. next thing to know ability. should i pull lmg and switch over to gl? you talked about get glts. >> gas and liquids? look. they're both, one's a yield play, sheneer. it's not a client. not a supplier there. i think the world of chart. i think we had a huge pullback in the show, you want to ring a little register on it. i hear the music for chartnado. "mad money" do, our look at
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natgas charts where carly garner said it's going higher. stay with cramer. . coming up, the factor chart week continues with a predator that could be ready to shred your profits. don't move, cramer's armying you with the tools to ward off this hammerhead.
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to go the distance with you. go long. it is time, it is time for the lightning round. we talk about brie buy, buy, buy, or sell, sell, sell, are you ready ski daddy? i want to start with lowry in north carolina. lowry! >> caller: jim, yes, haines grand, tell me what you think of it for the next rest of the year. >> i think it's a terrific stock. i know next week we will hear from tile companies and retailers. why don't you wait until they talk. maybe more numbers get cut, then by haines, haines numbers aren't getting cut.
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let's go to brian in new york. hey, brian. >> caller: hey, jim, which stock would be and what do you think of stg? >> the eagles are google, netflix the eagles are eog, the other stocks aren't. they're nothing. okay. sbg i don't like. why? because it only yields 3%. i node to get 4% on that the reits are coming down before i want to pull the trigger. the eagles are most takeover names. let's go with dan in kechl, please, dan. >> mr. cramer, a nice isn'tny norwalk, connecticut, boo-yah to you. >> the best in the east. >> caller: hey, i have been looking for a nice play for the add to my portfolio. one stock i caught were calloway golf. they original added a new ceo, a nice new game plan and hot product line. do you think calloway is subject to a nice takeover? >> i don't recommend it if i don't trust the fundamental also. you did portray it as a spec.
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i will bless that you bought it. you got some homework. let's go to nick in oregon. >> caller: boo-yah, jim from portland, oregon. >> wow, man, we love portland, oregon. love to do the show from there. water up? >> caller: i have been using your recommendations to guide ply investments. the best one, domino's pizza. >> i was on fantasy guru today, doing a little radio show and he asked me, what team is what? i said this domino's pull back dlimplts i pull the trigger. let's go to mark in michigan. mark. >> hi, jim. >> hi, mark. >> yeah, a big detroit tiger's baseball boo-yah to you. hello. >> yeah, go ahead, man, are you up. >> okay. my question is about general mills. >> oh, you must have been listening. i would say in '49, i don't care
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for buying it. that's my level. 50 got the points. james in new york. james caller hi, jim, boo-yah, how are you doing? >> really good, thank you. >> fine, thank you. my question is about sonic drive restaurants. they hit a recently 52-week high. they seem to be expanding. i want to know if there a any more upside to this stock. >> blooming brands, red robin gourmet, red robin gourmet burgers and yours, sonic, are all if they pull back, you got to do some multiple buys. that's the strongest good buy in the market other than the natural foods group. let's go to allen in florida. >> hey, how are you doing? b boo-yah, to you. >> this is allen from delray beach, louisiana. i want to knowant jazzo and the 96 direct offerings? >> i'm not jazz zo about jazzo at all. i'm tell, telling tell, you go
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to tilener michigan. tyler. >> hey, how are you doing? >> not bad. >> i was wondering to it would be a good idea to invest in abercrombie and corporation. >> i can't tell ifpy kids want to by there from yesterday to tomorrow. how can i recommend a stock like that? i mentioned hollister, they tell me let's go buy a house, next day they said, dad, i can't go to hollister again. i can't edmonton that stock. >> hi, mr. cramer. thank you for taking my call. my stock is occidental petroleum. >> my charitable trust has a big position. we believe in the interim the quarter was a mess. they are joining a lot in the permian, they do have a gigantic position in monterey if governor brown lets them drill, occi goes up in earnings. otherwise, they need to split up in the various division, that, ladies and gentlemen, is the conclusion of the lightning round. . >> the lightning round is
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. >> i'm never getting tired of this one. with the markets getting different, how shocked out should we be? is it more of a garden variety pullback. we need to consult the fear index. aka the cbo volatility index or vix for short. consider this the hashtag chartnado portion. mark sebastien, the chief operationing officer. so does that mean it's time to
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freak out? intoogs says not so foot. the thing about using the volatility index is it's all relative. sebastien points out ordinarily the vix and fortune 500 is supposed to move in opposite directions. when it gets hammered, it should surge, with i is exactly what happened. sometimes this relationship breaks down. can be a sign that whenever trade happens to be dominating the stockmarket at that moment, it doesn't last. so before we get to today's action, let's go through examples of the recent past that let you understand what sebastien is getting at. first consider what happened when the s&p 500 plummeted in late june and the vix surged. the market is down. remember, that was the big interest rate scare. in a few day, it dropped from 16.40 to the 15.60s area. meanwhile the vix as it should, exploded higher. that's just what should happen. at the time sebastien told us the market wouldn't bottom until the s&p pulled back and the vix
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failed to go higher. famed. because when the correlation between the two breaks down, that's a classic sign that the move, whatever direction it's in, is over. sure enough on june 24th, the s&p tanked at the open making a new low t.vix famed to make a new high, that was the tale. this is great. when you zoom in on an hourly chart that covers thursday, june 20th through monday, june 24th, you can see that during the day when that monday, the vix actually sold off dramatically in tandem with the s&p. should happen. remember, the vix and 500 should go in opposite direction when that correlation is up. when this coral liegs, these are supposed to go in opposite directions. this went down and that went down. that's how you get a trend chase. i'm sorry i misspoke there. that's exactly what happened on june 24th. we bought the the fabulous bottom, with unthat the action in the volatility index predicted, he predicted, in other words, as long as the markets going down, this should be going higher.
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suddenly the market is going down, this went down with it. that was the correlation that broke. okay. so now fast forward to today, check out this daily chart. if this current sell juv has some legs to it, the subpoena now 3% off its highs, sebastien would expect vix to be soaring. but that's not what's happening. sthed instead, the volatility is rising off a slow level. now we got to zoom in again, let's zoom on on the action yesterday and this morning. we see something similar to what happened in june. today the s&p 500 opened down. here's the s&p 500, opened down, they mooid made a hard move lower, touching 16.60 at the same time the vix spiked to nearly 15. that's supposed to happen, merely 45 minute later, the s&p threatened to pull back to 16.60 again, right here. threatened to pull back. but the vix was almost 75 cents lower than the volatility index basically never recovered, dipping down to 14 and change. again, we have a moment where
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the inverse correlation between the vix and stockmarket was broken, it broke here intraday. it is not pointing toward any sort of panic. sebastien says while the s&p could go higher or lower, the action is it won't have much of an extended sell-off. in fact, he thinks it's a relative weakness it's more likely the vix will travel back above 17 hundred than a trip below 1,600. it's the bottom, he says. here's the bottom line. i always tell you that nobody ever made it on panicing. we have the interpretation of the charts. based on sebastien's view of the vix, this won't be a long, horrible sell-off of the market. it is not a time to be afraid, he says. we can bounce back much sooner than we expect in lategion. is sebastien right? we know this, he has right before times of extreme panic. i think what he says is a long shot. this may be one more time, he's nailed an important bottom. stay with cramer.
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this is a novel approach and involves attacking cancer stem cells. onco meds are far from being used on people. the company generated a lot of buzz. i told you to get in on the ipo before it went public on the 17th. it popped 16% on the first day of trading. i said after the ipo, you had to ring the register. it turns out ringing the register was a good idea, it highs from 31 to 19 and change. these tiny biotechs can be volatile. i like the pipeline, one big caveat. if it falls through the ipo prices, a lot of people with programmatically dump it. next day sam in hawaii inquired about natural grocers, symbol ngbc. i love the natural food space. i will watch my interview, i wanted to do more home before giving recommendations. the retailer of organic and
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dietary supplement, 17 stores, western states. eastern those this category is on fire, failure grocers trades at 17 times earnings. i prefer, yes, indeed, wfm whole foods. also on july 29th, bunny in south carolina, asked me for a diagnosis on immuneomedics. immu. it has an exciting pipeline in hard to treat diseases like pancreatic diseases and lupus. the teeny stock is already up 75% perrier. if i owned it, i would take profits. that's up too much. remember that group is too hat for me right now. last but not least, on july 31ths, eli in new york asked about abner farm, abnr. so i wanted to give the one a check-up as well. abner has drugs on the market in the pipeline for diabetic euro pathic pain. the stock is up 85 pfrs for the year. i'm concerned it's at value and i'd wait for a pullback. i also want collarty in the company's partnership.
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keep these biotechs coming. you though we love them. the ceos. now, let's add to your tweets, yes, indeed, hashtag chartnado. let's start with a tweet. chart for ackman vs. icahn. oh, please? please, icahn is a natty dresser. i think that says it all, right? it's 69 tick? is that the number i see there? okay, now, we have a tweet. he says the following, i think nike should by lululemon. it's lululemon. i made fun of it. give them greater retail presence, good luck. they should have done it two years ago before christine day turned on the jets there. lulu is an animal, i don't think nike should buy it. our next came in cam, what gives with radian?
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i thought you liked this one, turning sour? >> no, mortgage rates went up big to is up just gantically. it's called profit taking. up next. we have a tweet, using decny, 8% off the high, hashtag mad tweets, you have horse sense. our next comes attaldandridge, 1945, get ready, the phillies are going down, you are absolutely right. judge wapner is a dodger's fan. he was telling me how they were doing so great lately. he says they are the hottest team in baseball. other than my braves. next, we have a tweet. this tweeter says we need a chart a day. it's been fantastic. thanks. i have to tell you. chartnado has been a blast. i don't know hashtag chartnado my executive producer gets mad when i don't mention hash tack. stay with cramer.
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. tonight on "the kudlow report," a beg sell-off on the markets today, advice on what to do right now. plus the crisis in egypt deepens. we will examine whether the country is the approaching full scale civil war. kudlow at the top of the hour. [ marco ] i'm a student at devry university. and this is my home team. this is my large lecture hall. this is my professor. and also my coach. this is my booster club. this is the guy who's graduating ready for a great career in technology. [ male announcer ] in 2012, 90% of devry university grads actively seeking employment had careers in their field in 6 months. join the 90%. learn how at join the 90%. the world is changing faster than ever, creating new opportunities for those who stand ready to seize them. in a time when the biggest risk is playing it safe, we believe outshining the competition tomorrow
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this man is about to be the millionth customer. would you mind if i go ahead of you? instead we had someone go ahead of him and win fifty thousand dollars. congratulations you are our one millionth customer. nobody likes to miss out. that's why ally treats all their customers the same. whether you're the first or the millionth. if your bank doesn't think you're special anymore, you need an ally. ally bank. your money needs an ally. . >> all right for hash tack chartnado, we had two billing calls, carly garner is saying,
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listen, natural gas is done going down. then mark sebastien is saying the biggest signal that we hit the bottom today is a bigger call in the world for that one? they did it right last time, there is always a bull market somewhere, i'm jim a major stock sell-off as the dow drops more than 200 points. this isn't just fears about the taper anymore. now the market is reacting to new inflation fears. even more dramatic than the drop in stocks, the surge in gold and silver prices. they soared today on safe haven investing. and also because of global political upheaval. we're talking about the prices in egypt, which worsened dramatically the last 24 hours, have become even more deadly and more volatile. the country may be on the verge of all-out civil war and it's unclear the u.s. can do anything about it. all those stories and more coming up on "the kudlow rep


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